Distribution Trends in Soft Drinks: On-Premise vs Off-Premise Dynamics & Forecasts to 2015 UK

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Distribution Trends in Soft Drinks: On-Premise vs Off-Premise Dynamics & Forecasts to 2015 UK
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Distribution Trends in Soft Drinks UK







Contents

Distribution Trends in Soft Drinks: On-Premise vs Off-Premise Dynamics & Forecasts to

2015 .................................................................................................................................................. 2

Distribution Trends .................................................................................................................................... 2

Market Valuation/Pricing ............................................................................................................................ 3

Soft Drinks On-Premise vs Off-Premise – Volume, 2006-2010F (% Growth) ........................................... 4

Soft Drinks On-Premise vs Off-Premise – Value, 2006-2010F (% Growth) .............................................. 4

Soft Drinks on-Premise vs Off-Premise – Volume & Value, 2006-2010F (M Litres/Local Currency) ........ 5

Soft Drinks On-Premise vs Off-Premise by Category, 2009 vs 2010F (% Growth).................................. 5

Soft Drinks On-Premise vs Off-Premise, 2009-2015F (% Growth) .......................................................... 6

Soft Drinks On-Premise vs Off-Premise, 2009, 2010F & 2015F (% Share) ............................................. 6

Soft Drinks On-Premise vs Off-Premise Average Price Per Litre by Category, 2010F (Local Currency) .. 7

Soft Drinks Product Definitions ..................................................................................................... 8

Glossary ..........................................................................................................................................15

Forecast Methodology...................................................................................................................17









Soft Drinks Service/Dec-2010 1

UK Distribution Trends in Soft Drinks





Distribution Trends in Soft Drinks: On-Premise vs Off-Premise

Dynamics & Forecasts to 2015





Distribution Trends



On-trade suffers due to closures of outlets



The on-trade fell to its lowest share of total soft drinks over the past few years at 14%, driven by the economic

slowdown, with consumers not eating out as often as in the past. Consequently the off-trade and particularly the

modern retail and discount channels enjoyed a boost to sales. As one would expect the convenience channel

and traditional retail channel (where prices were higher) lost market share in 2009.



Packaged water saw on-trade volumes decline due to the cut back in out of home expenditure, whilst impulse

channel lost volume to large supermarkets which generally have cheaper prices.



Heavy promoting within carbonates saw volumes increase through the off-trade, whilst pub closure impacted

on-premise volumes.



Similarly in the juice category where 90% of volume is off-premise, pricing activity helped the discount and

modern retail channel increase share.



The on-trade is important for nectars because of the importance of J20 but this channel was hit by the closure of

many outlets.



Still drinks saw the trend of consumers buying their impulse packs in the supermarket, which impacted impulse

channel volumes.



Squash/syrups continue to be off-trade led and the problems within the on-trade only helped off-premise share

grow.



Iced/rtd tea drinks remains very much an off-trade category but smaller players are using Horeca to gain

attention and distribution.



Iced/rtd coffee drinks have a large representation through products made in an increasing number of coffee

shops.



Sports drinks saw modern retail sales increase due to increased consumption of Private Label products.



Energy drinks had some loss of volumes from the profitable off-trade as a result of the closure of outlets.



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